Investing

Fintel’s Top 10 Canadian Dividend Stocks for November

The Fintel research platform has highlighted these ten Canadian stocks that look attractive in the current market based on their respective dividend scores.

The platform’s dividend score combines both a company’s dividend yield and growth to generate a score out of 100 based on its ranking against peer companies on the screen.

The most common companies topping the list this quarter have been energy, mining and listed real-estate companies.

Calgary headquartered oil and gas company Cardinal Energy (CA:CJ) continues to lead the Canadian market at the top of the dividend leaderboard with a score of 94.40. Cardinal during September increased its monthly dividend from 5 to 6 cents per share, equating to a 20% growth in the dividend rate.

Cardinal now has an 8.12% annualized dividend yield based on a closing share price of $8.94.

The stock reported third quarter results to investors last week, generating $179.4 million in revenues compared to $120 million in the prior year. For the quarter, CJ generated $56 million in free cash flow which enabled management to increase the dividend rate.

Following the result, the stock was downgraded to ‘market perform’ from ‘outperform’ at institution Raymond James on valuation grounds vs peers following the strong share price rally over 2022 which has seen the stock more than double in price. On average, the street remains ‘overweight’ rated on the stock with a consensus $11 price target.

Canadian small cap natural gas player Orca Energy Group (CA:ORC.B) holds second place on the leaderboard with a score of 90.65. The Tanzanian focused producer has an annualized dividend per share of 40 cents equating to a dividend yield of 8.44%.

Orca increased its quarterly dividend rate by 25% from 8 cents to 10 cents per share in early 2021 following a growth in free cash flow as gas production scaled up.

At the most recent result in August, the company reported daily average gas sales of 85.6MMcfd, rising from 50.1MMcfd in the prior year.

Disposable paper and product manufacturer Westbond Enterprises (CA:CBE) during the quarter has risen from 5th to 3rd rank on the leaderboard with its 90.26 score.

Since we last reported on the stock, the share price has retreated further which has increased the dividend yield to 6.67% based on a quarterly payment of 0.5 cents per quarter.

The company continues to face supply-chain and labour challenges that are impacting the industry but remains profitable. The company is next scheduled to report second quarter earnings to investors at the beginning of December.

Canadian mining giant Lundin Mining Corp (CA:LUN) has drifted down from second to fourth spot on the leaderboard since we last reported with its dividend score drifting lower to 89.90.

The stock reported third quarter results to investors at the end of October, with EPS and revenue both coming in below analyst forecasts. During the result, management noted that total zinc production may not meet the 2023 guidance range due to a slower than expected ramp of new operations.

The stock has an annualized dividend yield of 5.82% according to the Fintel platform and has grown dividends at an average of 1.94% over the last two years.

Lundin is widely covered by the street and has an average ‘hold’ rating with an $8.86 average price target. The consensus target drifted lower over 2022.

Canadian oil and gas royalty company Freehold Royalties (CA:FRU) has fallen one rank since we last reported and is now in fifth spot with a score of 87.81. The royalty company pays an annual dividend yield of 6.53% which has drifted lower recently as the FRU stock price has risen.

Freehold pays dividends from a high-netback portfolio of mineral titles and royalties on oil and gas properties across North America. On a two year view, the royalty stock has grown dividends by 3.50%

Freehold reported third quarter earnings to investors this week with revenue more than doubling to $98.4 million from $51.4 million in the prior year.  For the full year, the company now expects to generate funds from operations between $300 to $320 million.

FRU is widely covered by analysts in the street that have an average ‘overweight’ recommendation and $20.60 target on the security.

Other stocks in the top 10 include Cascades Inc (CA:CAS) in sixth spot with a score of 83.81 and a 5.63% dividend yield.

Westshore Terminals Investment Corp (CA:WTE) holds seventh spot with a score of 83.54 and a dividend yield of 4.99.

Sir Royalty Income Fund (CA:SRV.UN) is our eighth stock with a score of 83.43 and a dividend yield of 7.74%.

Firm Capital Property Trust (CA:FCD.UN) is the ninth stock on the list with a score of 83.22 and dividend yield of 8.87%.

Fiera Capital Corp (CA:FSZ) is the final stock on our list in tenth place with a score of 82.55 and dividend yield of 9.77%.

This article originally appeared on Fintel

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